"Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years"
"Most investment managers would produce better returns for their clients if they completely ignored current market price"
"I’d be a bum on the street with a tin cup if the markets were efficient"
"I feel very strongly that, in the short run, the market is illogical, capricious, wanton and wild in the way that it prices financial assets. It behaves just as you would expect any mechanism driven by fear and greed to behave."
"To suppose that the value of a common stock is determined purely by a corporation’s earnings discounted by the relevant interest rates and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin and believed Orson Wells when he told them over the radio that the Martians had landed"
"Fear has a far greater grasp on human action than the impressive weight of historical evidence"
"Whatever men attempt, they seem driven to overdo. When hopes are soaring, I always repeat to myself that two and two still make four"
"When people are free to do as they please, they usually imitate each other"
"Traditional wisdom is long on tradition and short on wisdom"
"There are two consequences in history; an immediate one, which is instantly recognized, and one in the distance, which is not at first perceived. These consequences often contradict each other; [...] look to the end of an accomplished fact, and you will see that it has always produced the contrary of what was expected from it"
"History has shown that in every age and in every field of human knowledge, many of the views which almost everyone accepted as true and never bothered to think about further, were in time proven completely wrong"
"The conventional view serves to protect us from the painful job of thinking"
"Too often we… enjoy the comfort of opinion without the discomfort of thought"
"Sadly [equity] research analysts and portfolio managers are like legislators. When legislators get together they have to pass laws whether [or not] there is any need for those laws or whether they will benefit anyone.It is just an immutable fact of the human condition: even losers love to play musical chairs."
"If it is in the headlines, it’s in the stock price"
"The investor of today does not profit from yesterday’s growth. If past history was all there was to the game, the richest people would be librarians"
"Risk comes from not knowing what you are doing so wide diversification is only required when investors [are ignorant]. You only have to do a very few things in your life so long as you don’t do too many things wrong"
"The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage"
"It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price, so why not invest your assets in the companies you really like? As Mae West said, “Too much of a good thing can be wonderful"
"Ain’t only three things to gambling: knowing the 60-40 end of the proposition, money management, and knowin’ yourself"
"If you must play, decide on three things at the start: the rules of the game, the stakes, and the quitting time"
"I skate to where the puck is going to be, not to where it has been"
"Change is the law of life. And those who look only to the past or present are certain to miss the future"
"In [an] economy, an act, a habit, an institution, or a law, gives birth not only to an effect, but to a series of effects. Of these effects, the first only is immediate; it manifests itself simultaneously with its cause – it is seen. The others unfold in succession – they are not seen: [...] Now this difference is enormous, for it [is often true] that when the immediate consequence is favorable, the ultimate consequences are fatal, and the converse"
"The only certainty is that there is no certainty"
"[Berkshire was built on] the eternal verities: basic mathematics, basic horse sense, basic fear, and basic diagnosis of human nature [to make] predictions regarding human behavior. [We stuck to the basics] with a certain amount of discipline and (not surprisingly) it has worked out quite well"
"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria"
"It is the long-term investor…who will in practice come in for the most criticism… For it is the essence of his behavior that he should be eccentric, unconventional, and rash in the eyes of average opinion"
"Investment based on genuine long-term expectations is so difficult today as to be scarcely practicable"
"In the short run, the market is a voting machine. In the long run, it’s a weighing machine"
"You are neither right nor wrong because the crowd (agrees or) disagrees with you. You are right because your data and reasoning are right"
"Investing is like baseball. If you want to score runs, don’t study the scoreboard, study the playing field"
"Its only when the tide goes out that you see who has been swimming naked"
"Every wealthy investor I know and every wealthy investor you know has either built their wealth through ownership or inherited it from an owner"
"Speculators often prosper through ignorance; it is a cliché that in a roaring bull market knowledge is superfluous and experience is a handicap. But the typical experience of the speculator is one of temporary profit and ultimate loss"
"There is scarcely an instance of a man who has made a fortune by speculation and kept it"
"Don’t use margin. If you’re smart, you don’t have to borrow money to make money. If you’re dumb, you may go broke"
"Sound investing can make you very wealthy if you’re not in too big a hurry"
"Buy stocks the way you buy groceries, not the way you buy perfume"
"Always buy your straw hats in the Winter"
"Buy when everyone is selling. And hold until everyone is buying"
"For an idea ever to be fashionable is ominous, since it must afterwards be always old fashioned"
"The most important quality for an investor is temperment, not intellect"
"When the brothel burns down, even the pretty girls have to run out"
"Be fearful when the world is greedy and greedy only when others are fearful"
"(An intelligent) investor (gets) satisfaction from the thought that his operations are exactly opposite to those of the crowd"
"It is not the return on my investment that I am concerned about; it’s the return of my investment"
"Investing is most intelligent when it is most businesslike"
"People think of inflation as prices going up. It’s not. It’s the value of money going down"
"The three most important words in investing…Margin of Safety"
"We are normally put in the category called “value investors”. This has always surprised me a bit, because it seems to imply [the existence] of another category called “non-value investors”"
"Price is what you pay, value is what you get"
"The only intelligence investing is value investing…to acquire more than one is paying for"
"Worldly wisdom teaches us that it is better for reputation to fail conventionally than to succeed unconventionally "